Many property developers don’t place a great deal of store in “marketing”. Some think it’s just pretty pictures in a brochure, a “build it and they will come” sort of approach. But avoiding proper marketing adds massively to your property development risk.
Marketing promotion is totally different to strategic marketing. Strategic marketing can determine whether your development is going to be successful or not before you’ve even broken soil.
Strategic marketing can determine whether your development is going to be successful or not before you’ve even broken soil.
In short, it can help you eliminate many of the risks associated with property development.
PROPERTY DEVELOPMENT RISK
The problem with property development as a business model is cash flow. All of the risk is up front. In most cases, you have to buy the land, get planning permission, and start construction before any money starts coming in from sales. Worst still, the balance is only paid on completion of the property so cash flow is a nightmare.
You do it for profit, of course, but also for fun, pride, legacy, lifestyle and all sorts of other good reasons.
But if you get it wrong you go bust, and that hurts a lot of people—your family, employees and providers.
Heaven knows there are enough things that can go wrong with property development without us being the cause ourselves:
- Banks playing up
- Contractor issues
- Weather etc.
8 OUT OF 10 REASONS WHY DEVELOPMENTS FAIL CAN BE ATTRIBUTED TO MARKETING
In a survey carried out a few years ago by Charlston Consulting, these were the top 10 development killers:
- Failure To Understand The Market and Customer
- Paying Too Much Money For The Land Component
- Poor Project Feasibility, Risk Assessment and Financial Analysis
- An Inadequate Project Brief
- Failing To Consider Operational Issues
- Project Size & Scale
- A Poor Sales & Marketing Plan
- A Lack of Focus and Engagement
- Design & Contract Variations
- Inadequate Project Contingency
When I look at this list, to my mind there’s only “Failing To Consider Operational Issues” and “Inadequate Project Contingency” that are not affected by strategic marketing.
In other words, 8 out of 10 “development killers” are caused by marketing related factors.
CLASSIC Ps OF MARKETING
Marketing isn’t just about promoting your development. Marketing in its broader sense—Strategic Marketing—includes the four classic Ps of marketing:
THREE MORE ESSENTIAL Ps FOR SUCCESSFUL PROPERTY DEVELOPMENT
In over 25 years of property marketing, I’ve learned that three more Ps are essential to make a property development successful:
What do all these mean and how do they work with the previous four? Here are my 7 Ps of Property Marketing:
- Place – your property site’s location
- People – your target market of customers or Avatar
- Positioning – what makes you stand out from your competitive set
- Product – what you physically build and ancillary services
- Price – your value proposition
- Promotion – how you let your market know about you
- Pace – time lost is money wasted
So if you get your marketing thinking right, 80% of development risk can be eliminated!
If you get your marketing thinking right, 80% of development risk can be eliminated!
THIS CHECK LIST WILL HELP YOU ELIMINATE 80% OF RISK WITH YOUR DEVELOPMENT
In this blog series, I’m going to go into the 7 Ps of Property Marketing one by one.
You’ll learn how to launch your own property development while eliminating 80% of the risk.
Giving due consideration to the 7 Ps costs nothing other than time.
Failing to apply the 7 Ps of property marketing could mean building the wrong thing in the wrong place and selling it at the wrong price. It could mean you lose your shirt.
So whether you’re involved in residential, leisure or commercial property development … why risk losing your shirt?
Applying the 7 Ps of Property Marketing can increase your chances of successfully promoting your property development by 80%. Get started now with our Property Marketing Checklist!
NEXT UP: PLACE! AND WHY IT IS THE FIRST ‘P’ OF PROPERTY MARKETING
Meanwhile, applying the 7 Ps of Property Marketing can increase your chances of successfully promoting your property development by 80%. Get started now with our Property Marketing Checklist!